Life relates to trading and trading relates to life. Constantly revealing, unfolding before us as we trade and live, so I write about how my life relates to trading and how I trade the markets. Along the way I share my opinions on anything that evokes my passion or tickles my funny bone trying not to forget that enjoying life is the best part of living.

Monday, October 4, 2010

Speaking of Taxes, Part VI - What's Next?

What can possibly be next? Another earnings season, elections, terror travel warnings, Holiday hiring, are all coming into season but before we rush to that, let's consider that the run up of last month needs first to be digested, or that, for better or worse, October is a month for planning.

Profits to be taken, losses to be shed. Tax planning is important for a trader and investor both. Especially since this year may mark the last for the most favorable capital gains tax we've had in decades and regardless of the type of trader or investor you may be, it's important to start finalizing your tax strategy. Planning for the event starts at filing of the last return and gets adjusted during the year; but if you have not started, it's important to at least have a grasp of your standing and get familiar with the pros and cons of your choices. You have until the end of December to carry out the plan.

This is also the last year of the zero capital gains tax if your income is low enough. It has been in effect for the last 3 years, but usually, regardless of income, minimum capital gains tax applies and this tax may not be kept going forward. In addition, I am not totally convinced that low tax rates and the previous tax cuts will carry on, although it would be wise to continue them. Politicians have their own agenda and lame duck or not, they usually decide on tax cuts and raises somewhere around Christmas Holidays when they also sneak in their pay raises. Most tax payers don't pay attention then. Maybe this year will be different, but different for who, one cannot guess, and perhaps you cannot gamble on the chance or the change.

About Me

a posse ad esse or from being able, to being

In trading as in living, We must see the possible in order to create the actual. Through a maze of charts, indicators and endless outlook chatter, we must create our own vision and from that actualize our possibilities. In short, create and realize our dreams.
With my experience and ability to visualize, I can help you realize yours.
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DISCLAIMER

Day Trading with Anni is a blog and website intended for education, entertainment and information only. The content provided herein is not to be construed as recommendations to buy or sell stocks of any kind. They are simply the opinions of the author. It is possible that the editor of this blog may own, buy, or sell stocks presented. All readers, traders, or investors should consult a qualified professional before trading any stock. The author is not an investment advisor. Any investments, trades, and/or speculations made in light of the ideas, opinions, and/or forecasts made by the author are committed at the reader's own risk, financial or otherwise.That said, all content is under copyright by the author.